How to Explain Your IRS Debt Situation to Loved Ones

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Are you seriously behind on your taxes? It takes a certain vulnerability to ‘come out’ to loved ones, but the reward could be well worth that brief moment of discomfort. Your friends and family members may be more understanding than you suspect; at least a few have likely dealt with tax issues of their own—and most people in today’s society know what it’s like to be in debt.

Your loved ones can offer much-needed solace or advice during this difficult time. Follow these simple steps to break the news and start a constructive conversation:

Timing Is Everything

As with any bad news, it’s imperative that you avoid sharing when tensions are high. Do not reveal your issues with the IRS in a moment of anger; this could prompt an aggressive and unproductive fight. Instead, choose a calm time in which distractions are minimal to reveal your current troubles.

Honesty Always, Details Sometimes

Don’t try to sugarcoat the issue. While there is certainly hope for the future, your loved ones (especially close family members who might be impacted by your financial situation) deserve to know the full extent of your issues. That being said, the extent of details you reveal will depend somewhat on the nature of your relationship. For example, friends you only see on occasion probably don’t need the dirty details about your debt.

Discuss Solutions

Ideally, you will have a good idea of potential solutions by the time you discuss your tax situation with loved ones. This will help you end your conversation on a high note. Outline possible next steps and how these strategies could resolve your tax issues.

‘Coming out’ to your friends and family members can be nerve-wracking. You’ll find it far easier to discuss these issues with the sympathetic enrolled agents at Highland Tax Resolution. Reach out today to schedule your confidential consultation at 720-398-6088!

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes